Short-selling bans lifted by six EU countries

France and Spain are among six EU countries lifting bans on short selling of shares that they introduced during high market volatility caused by the Covid-19 crisis.

The EU's securities regulator said the six, which also include Belgium, Greece and Austria have decided not to renew short-selling bans that expire on Monday.

Italy will end restrictions due to expire on 18 June on Monday to coordinate with the other countries, the European Securities and Markets Authority said.

"ESMA has coordinated the recent emergency restrictions renewals and has contributed to this aligned action today," the regulator said.

Industry associations have criticised the bans for lack of coordination and potentially undermining confidence in major European financial markets. Germany and the UK have not curbed short selling during the crisis.

France's market regulator, the Autorité des Marchés Financiers, said trading had moved closer to normal conditions since the ban, introduced in March. Short sellers seek to profit from falling share prices by borrowing and selling shares in the hope of buying them back for less later.

“Markets have partly reduced their losses, trading volumes and volatility have returned to levels that are still high compared to mid-February," the AMF watchdog said."However this reflects market participants’ uncertainties in the current context."